Haycarb records turnover of Rs. 11.9 b, Rs. 1.07 b PBT for 2014/15

Sri Lankan multinational Haycarb PLC reported revenue of Rs. 11.9 billion, profit before tax of Rs. 1,070 million and profit after tax of Rs. 873 million for 2014/15. The earnings per share of equity holders of the company were Rs. 23.39 for the year.

Haycarb is the pioneer manufacturer of coconut shell activated carbon in any coconut producing country with manufacturing facilities in Sri Lanka, Thailand and Indonesia supported by marketing offices in the USA, UK and Australia. The company contributes net foreign exchange revenues with its value adding processes whilst remaining a leading and technologically superior manufacturer in its chosen segment.

Haycarb PLC and Hayleys PLC Chairman Mohan Pandithage said that Haycarb has consolidated its position as a leading manufacturer of coconut shell based activated carbon and a provider of total solutions in related areas and has achieved a profit before tax of over Rs. 1 billion for the third consecutive year.

Haycarb PLC Managing Director Rajitha Kariyawasan said that the company operated in a challenging external environment during the year under review. He said: “The increase in price of the primary raw material, coconut shell based charcoal impacted the profitability of the Sri Lanka and overseas operations, as the prevailing market conditions prevented the company from passing the increase in raw material and other input costs to end customers adequately. The markets continued to be affected by the depressed gold mining industry and low-cost competition from countries such as Philippines, Indonesia and India. The depreciation of currencies in key markets in which we operate, notably in the second half of the year, contributed to the erosion of margins.”

Kariyawasan added that in this background, several initiatives contributed to the recovery of profitability, especially in the last quarter of the year.

Haycarb Group crossed the significant milestone of 40,000 MT of installed manufacturing capacity per year with the commissioning of the new plant in Indonesia and a major thrust on lean initiatives targeting productivity improvements. The lean projects launched by technical and manufacturing teams to achieve cost savings, notably through energy saving initiatives helped the company to retain its competitiveness. The increase in market share of value added carbons, and the growth in its non-traditional markets and purification systems were positive factors that helped to achieve the overall results.

During the year, the company focused on expanding its supply chain network for coconut charcoal in Sri Lanka and Indonesia, consequently reducing dependency on India. The supply chain relationships and sustainability were strengthened by providing the technology and financing to install environmentally-friendly charcoaling pits under the initiative ‘Haritha Angara’ to selected suppliers in countries we operate in.

Kariyawasan said that performances by the operations in Thailand and in Indonesia contributed significantly to overall Group performance. The allocation of value added sales supported by enhancement of production capabilities, processes and systems together with initiatives to grow the local markets helped to achieve the notable results. Similarly, the Group’s Environmental Engineering Company, Puritas Ltd. showed a significant growth in its revenue, PBT and operational footprint.

Puritas Sath Diyawara, the flagship CSR initiative of the Haycarb Group, provides purified drinking water to families in the North Central Province where it is estimated that over 400,000 persons are affected by the Chronic Kidney Disease (CKD). Haycarb Group commissioned the first Sath Diyawara project to provide purified drinking water to over 1,500 people, through a Reverse Osmosis (RO) Purification Plant and water distribution system in Maithreepura, Padaviya.

Kariyawasan said that it was encouraging to note that in view of the success of this initial project that its Parent Company, Hayleys, pledged to install a total of 10 similar projects to service over 15,000 people. “We are proud to announce that Puritas Sath Diyawara has won the prestigious ‘Asia Responsible Entrepreneurship Award 2015’ under the category SME CSR from Enterprise Asia in recognition of this initiative.”

Kariyawasan reiterated the growth potential of the activated carbon industry in view of the continuous emphasis and awareness on environmental sustainability worldwide. Haycarb’s strength in the industry as a leading player renowned for quality, reliability and consistent performance in its entire spectrum of activated carbon products and purification solutions, positions the company to capture the growing opportunities in this industry.  

The Board of Directors of Haycarb PLC comprises Mohan Pandithage – Chairman, Rajitha Kariyawasan – Managing Director, Dhammika Perera, Arjun Senaratna, Sarath Ganegoda, Mrs. Jeevani Abeyratne, Dushantha Ranaraja, Nimal Perera, Dr. Sarath Abayawardana, Sujeewa Rajapakse, M.S.P. Udaya Kumara and Brahman Balaratnarajah.